CEO exodus leaves MF sector in quandry

[epicresearch]

It is no hidden fact that the mutual fund industry is going through a difficult phase and recent resignations by CEOs of key mutual funds have added fuel to the fire. Fund houses are being forced to resize and restructure its operations, reports CNBC-TV18 Mitra Joshi.

There is no end to woes for the mutual industry which has been struggling due to low retail participation, redemption in equity funds, regulatory pressure and distribution processes. The industry has a new headache.

Three CEOs have put in their papers within a span of one week and these include the CEOs of Baroda Pioneer, Daiwa and Mirae Asset
The industry is not surprised and believes the recent CEO exits are a part of the 'restructuring' facing the business.

Fund houses like HSBC, IDBI, JP Morgan, L&T, SBI and UTI have seen the entry and exits of CEOs in the past one year.